According to ChainCatcher, a draft bill to regulate stablecoin issuers has been submitted to the Hong Kong Legislative Council for deliberation. Legislative Council member Wu Jiezhuang pointed out that stablecoins are an important tool for virtual assets and can be used for cross-border payments in addition to investment.
It is currently recommended that issuers place their reserve assets in the custody of Hong Kong banks, but this may not comply with the local regulations of individual currency traders. Wu Jiezhuang said that he will communicate with the government and the industry to seek a compromise solution, such as the formulation of a contract or mutual recognition of bills between the two places, without the need for assets to be stored in Hong Kong.